Which practice is commonly attributed to front companies?

• A. Commingle illicit funds with legitimate revenue
• B. Keep illicit and legitimate revenue streams separate
• C. Require a membership
• D. File fictitious name filings

Answer: (A)

Front companies are used to mask illegal activity by blending illicit funds with legitimate revenue, making the source of money harder to trace. This commingling helps launder proceeds by presenting a single, ordinary-looking cash flow to banks, vendors, and regulators, so criminal funds appear as legitimate income. The other options don’t align with this masking tactic: keeping illicit and legitimate funds separate would raise suspicion and hinder concealment; a membership requirement isn’t a defining feature of front operations; filing fictitious name registrations can help create an ostensibly legitimate storefront, but it doesn’t capture the core practice of mixing funds to disguise origins.